Peruvian steelmaker Aceros Arequipa has signed a $180 million loan with local Banco de Credito del Peru (BCP) to build a new electric arc furnace (EAF) at its Pisco mill.
SteelOrbis first announced the move in May 2016. More recently, in January 2018, Aceros Arequipa confirmed the investment, however, the loan was only signed in late October, SteelOrbis has learned.
Aceros Arequipa said in a document filing the $180 million loan was divided into two leasing contracts, one of $101.7 million, to fund civil construction works, and another credit line of $78.2 million. The $101.7 million facility has a 10-year tenure and an 84-month grace period. The $78.2 million loan has a 7-year tenure and a 36-month grace period. The two loan contracts were signed in both local currency (PEN) and US dollars (USD).